Business line of credit · Credit limits
How Much Business Line of Credit Can I Get? Limits by Revenue and Credit
Most businesses qualify for a line of credit equal to roughly 10% to 20% of annual revenue from an online lender, and up to 25% or more from a bank or an asset-based lender if the balance sheet supports it. A company doing $600,000 a year will usually see offers between $50,000 and $125,000; a company doing $3 million can reach $500,000 or more. This guide explains how lenders set the number, shows typical limits by revenue and credit, and lists what raises or lowers the figure.
How Much Can You Borrow on a Business Line of Credit?
Online lenders typically cap a business line of credit at 10% to 20% of annual revenue, or about one to two months of average bank deposits, with a ceiling of $250,000 to $500,000. Banks go higher, often 20% to 30% of revenue for established companies with clean financials, and asset-based lenders set the limit by collateral instead: 70% to 90% of eligible receivables and 30% to 60% of inventory, which can run into the millions. SBA Express lines top out at $500,000 and SBA CAPLines at $5 million.
Typical Limits by Annual Revenue
| Annual revenue | Online lender (typical offer) | Bank or SBA Express | Asset-based (if A/R qualifies) |
|---|---|---|---|
| $120,000–$250,000 | $10,000–$35,000 | Rare; $25,000–$50,000 with strong credit | Usually too small |
| $250,000–$500,000 | $25,000–$75,000 | $50,000–$100,000 | $50,000–$150,000 |
| $500,000–$1M | $50,000–$150,000 | $100,000–$250,000 | $100,000–$400,000 |
| $1M–$3M | $100,000–$250,000 | $250,000–$750,000 | $300,000–$1.5M |
| $3M–$10M | $250,000–$500,000 | $500,000–$2M | $1M–$5M |
| $10M+ | Capped at $500K | $2M–$10M+ | $5M+ |
These are offer ranges, not guarantees. Within each revenue band the credit score, time in business, existing debt and industry decide whether you land at the top or the bottom. A $1 million restaurant with 620 credit and two merchant cash advances will see $40,000; a $1 million engineering firm with 740 credit and no debt will see $250,000 from the same lenders.
Typical maximum line as a share of annual revenue
Online limits are driven by deposits and capped at $250K–$500K; asset-based limits scale with receivables rather than revenue.
How Lenders Calculate the Number
Each lender type uses a different formula. Knowing which one applies to you tells you what to fix to get more.
Online and fintech lenders: deposit-based
They average your monthly bank deposits over the last 3 to 12 months and offer a multiple, usually 1x to 2x average monthly deposits, trimmed for existing debt payments and negative-balance days. A business depositing $60,000 a month with no other debt will typically see $60,000 to $120,000. Each existing daily or weekly debit reduces the offer by its annualized payment.
Banks: cash-flow and coverage-based
Banks start with revenue and then test the limit against the debt service coverage ratio. They want business cash flow (EBITDA, or net income plus interest, depreciation and owner add-backs) to cover all debt payments, including a fully drawn line, by at least 1.25x. If the line would push coverage below that, they trim it. They also compare the line to working capital needs: a bank will rarely approve a line much larger than 60 to 90 days of operating expenses unless there is collateral.
Asset-based lenders: borrowing-base
The limit is a formula: eligible receivables under 90 days times the advance rate (70–90%), plus eligible inventory times its advance rate (30–60%), minus reserves. The limit recalculates every month as the collateral changes, so a growing company gets automatic increases.
SBA lines
SBA Express is capped at $500,000 and underwritten by the lender using its own policies. CAPLines (working capital, seasonal, contract and builders) go to $5 million and are sized to the specific cash cycle being financed: for a working capital CAPLine, that is the borrowing base; for a contract CAPLine, the cost of the contract.
What Raises Your Limit
Seven things consistently move the number up. Most can be improved in 90 days.
- Higher and steadier deposits. Lenders weight the most recent three months. Route all revenue through one operating account so the full picture shows.
- Fewer existing debt payments. Paying off a $40,000 MCA with a $900 weekly payment can raise an online offer by $40,000 to $50,000 because the lender no longer subtracts that debt service.
- Stronger personal credit. Every 20 points above 680 typically unlocks a higher tier; 720+ removes most limit caps at online lenders.
- Time in business. Crossing 2 years opens bank lines, which run 2x to 3x larger than online lines at the same revenue.
- Collateral. Offering receivables, equipment or a CD converts the line from a revenue formula to a collateral formula, which is almost always larger.
- Clean financial statements. Banks size bigger lines on CPA-reviewed statements and current interim financials than on bank statements alone.
- A track record on a smaller line. Six to twelve months of drawing and repaying is the most reliable path to a limit increase; most lenders review automatically at renewal.
What Lowers It
Declines and small offers trace back to a short list of issues. The first three account for most of them.
| Issue | Effect | Fix |
|---|---|---|
| Stacked MCAs or daily-debit loans | Offer cut by the annualized payments; often a decline above 2 positions | Pay off or consolidate first; see reverse consolidation |
| Negative balance days or NSFs | Each month with 3+ negatives drops a tier | Keep a cushion for 90 days before applying |
| Declining revenue | Lenders use the lower of recent and trailing-12 averages | Apply after a strong quarter, not a slow one |
| Personal credit under 640 | Caps most online lines at $25,000–$50,000 | See bad credit line options |
| Under 12 months in business | Limits roughly half of what the revenue suggests | Wait for the 12-month mark or offer collateral |
| High-risk industry | Lower multiple or outright exclusion | Target lenders that specialize in your industry |
| Open tax liens or judgments | Usually a decline until resolved or on a payment plan | Set up an IRS installment agreement and document it |
How Much Should You Actually Ask For?
Asking for too little leaves money you may need; asking for far more than the formula supports gets you a counteroffer or a decline. A practical approach:
- Add up your real cash-flow gap. The largest shortfall you have hit in the last year between paying vendors or payroll and collecting from customers. For most businesses that is 30 to 60 days of operating expenses.
- Add a buffer for one opportunity. A bulk inventory buy, a new contract’s start-up costs or a seasonal push. Lines are for timing gaps and opportunities, not for long-term purchases; use a term loan or equipment financing for those.
- Check the figure against the formulas above. If it is under 15% of revenue and under two months of deposits, ask for it. If it is higher, you will probably need a bank or an asset-based lender, and a longer process.
- Ask for slightly more than you need. Lenders rarely offer more than you request, and unused availability costs little or nothing on most lines. Asking for 20% more than your gap is reasonable; asking for 3x is not.
How to Get a Limit Increase Later
Most lines are reviewed every 6 to 12 months. To earn an increase, draw and repay regularly rather than letting the line sit unused, keep deposits growing, and send updated financials before the review rather than after. Online lenders often raise limits automatically after three to six months of on-time payments; banks want to see the annual tax return. If your current lender will not move, a broker can usually place a second, larger line elsewhere, and you can close the smaller one once the new one funds. Avoid stacking two lines from online lenders that both file blanket liens; that reads as distress to the next underwriter. Our guide to using a business line of credit covers the draw-and-repay patterns lenders like to see.
How RAN Funding Sizes Your Line
Because we work with bank, SBA, asset-based and online lenders at once, we can tell you within a day what limit each path realistically supports on your file, and whether a small change, such as paying off one advance or waiting one month for a stronger quarter, would raise it meaningfully. One application, one soft credit pull, offers from multiple lenders. Learn more about our business line of credit program or see how much you qualify for.
Common Questions
How much of a business line of credit can I get with $500,000 in revenue?
Typically $50,000 to $100,000 from an online lender, $75,000 to $150,000 from a bank if you have two years of returns and good credit, and potentially more from an asset-based lender if a large share of that revenue is invoiced to business customers.
Can I get a $100,000 business line of credit?
Yes, with roughly $500,000 or more in annual revenue, 12 or more months in business, personal credit of about 660 or higher and limited existing debt. Below those marks, a secured line or a smaller starter line is more realistic.
What is the maximum business line of credit?
Online lenders generally cap at $250,000 to $500,000. Bank lines run into the millions for established companies, SBA Express caps at $500,000 and SBA CAPLines at $5 million. Asset-based lines are limited only by the collateral and can exceed $10 million.
Does my credit limit depend on my personal credit score?
Heavily, at online lenders and for unsecured bank lines. Scores above 720 unlock the top tier; below 640 most unsecured limits cap at $25,000 to $50,000. Secured and asset-based lines depend more on collateral than on the score.
Do lenders count all of my revenue?
Most online lenders use bank deposits rather than reported revenue, so cash revenue that is not deposited and revenue that runs through a second account are invisible to them. Consolidate deposits into one account before applying.
Can a start-up get a business line of credit?
Under six months in business, rarely; the main options are a business credit card, a cash-secured line or an owner’s HELOC. Between six and twelve months, online lenders will offer small lines (usually under $50,000) if deposits are strong.
Sources
- SBA Express and CAPLines program limits — U.S. Small Business Administration
- Small Business Credit Survey, 2026 Report on Employer Firms — Federal Reserve Banks
- Small Business Lending Survey — Federal Reserve Bank of Kansas City
- Business line of credit underwriting benchmarks, 2026 — RAN Funding lender network data
See What You Qualify For
One application, about five minutes, soft pull only. A funding specialist tells you up front whether SBA is realistic for your file — and which faster products fit if it is not.